https://www.taxtmi.com/caselaws?id=883 Shortages reflected only in the assessee's SAP inventory could not sustain duty demand, penalty, or interest where the Department did not conduct physical stock verification and did not prove any discrepancy in the statutory RG-1 records. The record showed separate maintenance of production accounts, and the apparent shortages were explained by inventory system errors and internal adjustment entries. In the absence of proof of clandestine removal or wrong entries in the statutory records, the basis for invoking the demand and allied penal provisions failed, and the demand, penalty, and interest were set aside in favour of the assessee. en-us Wed, 13 Sep 2006 00:00:00 +0530 Sun, 13 Apr 2008 18:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=883 Shortages reflected only in the assessee's SAP inventory could not sustain duty demand, penalty, or interest where the Department did not conduct physical stock verification and did not prove any discrepancy in the statutory RG-1 records. The record showed separate maintenance of production accounts, and the apparent shortages were explained by inventory system errors and internal adjustment entries. In the absence of proof of clandestine removal or wrong entries in the statutory records, the basis for invoking the demand and allied penal provisions failed, and the demand, penalty, and interest were set aside in favour of the assessee. Case-Laws Central Excise Wed, 13 Sep 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=883